Wells Fargo Remains Bullish on Oracle (ORCL) as AI Concerns Ease

Core Viewpoint - Oracle Corporation is viewed as an undervalued AI stock, with analysts believing that concerns regarding its exposure to AI and OpenAI are exaggerated, and the stock has potential for growth [1][4]. Group 1: Analyst Ratings and Sentiment - Wells Fargo has reaffirmed an 'Overweight' rating on Oracle with a price target of $280, indicating confidence in the stock's future performance [1]. - Analyst Michael Turrin noted a shift in sentiment towards a more negative outlook, with concerns about Oracle's high exposure to OpenAI and the sustainability of its commitments [2]. - Despite the negative sentiment, there is a belief that the recent pullback in Oracle's stock price is overdone, returning to pre-OpenAI levels, and that there are opportunities for market share gains in cloud IaaS [3]. Group 2: Positive Developments - Oracle's deal to run TikTok's US business is seen as a significant positive development, contributing to a more bullish outlook for the company [3][4]. - The overall sentiment is improving, with investors beginning to recognize the potential benefits of Oracle's AI growth prospects alongside the TikTok deal [4].